Navigating Portfolio Diversification and Market Volatility

Good listeners welcome to 2025 and at the risk of offending Larry David and violating his strict 3 day statute of limitations, I gotta wish you a Happy New Year.

The subject at hand is diversification. What composition of assets yields a favorable return with bearable drawdowns? After two straight years of 25+ percent returns on the SPX with just 13 vol, portfolio construction might be considered an open and shut case. But in this short podcast, I propose 3 assets to overlay on top of your base risk exposure: put spreads, gold and bitcoin. Together, this combination can play a role in managing drawdowns and also provide convex returns against a rising tide of doubt that the US fiscal problem can be addressed.

I hope you enjoy the discussion and find it useful. I wish you the best this year.